// TRADING TERMINOLOGY

What is Lot?

The standard unit for measuring the size of a trade.

In-Depth Explanation

In Forex, a standard lot is 100,000 units. A mini lot is 10,000 and a micro lot is 1,000. Many brokers now allow "Nano lots" or fractional position sizing.

Practical Example

"A trader opens a 0.5 lot position on USD/JPY."

Master the language of risk

Knowing the terms is just the start. Learning how to apply them is where the edge is found.

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